The un-college revolution: Students are seeking bigger paychecks in trade school, and a new $7,395 workforce training grant could accelerate the shift

At the same time, a major policy shift is reshaping those options. Pell Grants (federal financial aid awarded to low-income students that does not have to be repaid) are expanding to include new Workforce Pell Grants for short-term training programs in skilled trades. Beginning July 1, 2026, eligible students can receive up to $7,395 to cover approved workforce programs (1).

That’s significant, because traditional Pell Grants have typically applied only to longer academic programs. The Workforce Pell expansion opens the door for low-income students to pursue career-focused training, such as in health care, manufacturing or technical fields, that may have previously been financially out of reach. In other words, students who might not be able to afford a four-year degree could now receive federal grant aid for shorter, job-ready programs.

Here’s why more students are reconsidering the university path, why skilled trades are gaining traction and how to determine which post-secondary option may make the most sense for you.

Rising college costs are pushing students toward alternative paths

That shift in mindset is already showing up in enrollment data. Community colleges are seeing enrollment climb 4.0%, according to fall 2025 data from the National Student Clearinghouse Research Center. That’s more than double the growth seen at public four-year institutions, which is up 1.9% (2).

Perhaps more striking, however, is that enrollment in two-year vocational and trade programs has grown nearly 20% between spring 2020 and spring 2025 (3), while trade school enrollment is projected to grow 6.6% annually through 2030, versus 0.8% for higher education overall (4).

Cost is a major driver behind that shift. It takes the average student borrower about 20 years to pay off their student loan debt, according to the Education Data Initiative (5). With that kind of long-term repayment timeline, students and families are increasingly weighing whether the return on investment justifies the upfront borrowing.

The One Big Beautiful Bill (OBBB) may add another layer of pressure. For the first time, it caps total lifetime federal borrowing for college and graduate school at $257,500. That means students pursuing longer or more expensive programs may hit the federal borrowing cap and be forced to turn to private loans, which typically lack income-driven repayment plans and forgiveness protections, potentially increasing their long-term financial risk.

All of this is unfolding against the backdrop of a massive national debt load: About 43 million Americans hold federal student loans, which total more than $1.6 trillion (5).

The appeal of skilled trades

While student loan caps, the high cost of college and Workforce Pell Grants could compel some students to pursue a career in the trades, those aren’t the only reasons.

A Harvard Youth Poll found that 59% of Americans aged 18 to 29 consider AI a threat to their job prospects. AI is “amplifying uncertainty about the future of work, with young adults expecting fewer opportunities, greater threats to job security and diminished meaning in their careers,” according to the poll (7).

While white-collar jobs could be on the AI chopping block, many skilled trades remain in high demand — and, unlike many of those white-collar jobs — may be less likely to be replaced by AI. Some of those trades offer average salaries well above $100,000 annually, according to Indeed. Like, for example, an ultrasonographer, which offers a national average salary of $131,161 a year (8). While not every trade role pays six figures, some health care and technical specialties can rival or exceed median bachelor’s-level earnings.

Compare that to the 2025 weekly median salary across all occupations of $1,204 (which would be $62,608 annually), according to the U.S. Bureau of Labor Statistics $62,608 (9). In other words, some trade and technical roles can pay more than double the median U.S. wage.

There are more than 275,000 workforce associate degrees and, of those, more than 75% are “associated with median earnings near or well above a living wage two years after completion,” according to the Community College Research Centre (10).

Aside from their earning potential, the skilled trades offer a quick entry into the workforce and steady, stable work without having to spend the next couple of decades paying off student loan debt.

Weighing your post-secondary options

As these financial and workforce dynamics evolve, students are being encouraged to take a more deliberate approach to their decision-making.